The Pensions and Lifetime Savings Association (PLSA) has published a ‘top tips’ guide for savers navigating the Covid-19 crisis, echoing recent regulatory messages.

The guide, COVID 19: Top Tips for Savers, has outlined a number of points explaining the potential impact on savers in different scheme structures, also emphasising the need to seek financial advice if in doubt.

PLSA chief executive, Julian Mund, stressed that people have been facing a “wide range of work disruption” including school closures, remote working, being furloughed and, in some cases, even being laid off.

Mund stated that this disruption, combined with market volatility, may prompt many savers to look at their short and long-term household finances, with a number of concerns to address.

The guide clarified that those with defined benefit (DB) pensions will have been largely protected from stock market movements, also benefiting from the support of the Pension Protection Fund in the case of employer insolvency.

It also highlighted that savings in defined contribution (DC) schemes are ring fenced from an employer’s assets, and are “generally protected” against insolvency of the pension provider.

The guide coincides with the introduction of new guidance from The Pensions Regulator, which asks trustees to warn DB members looking to transfer to DC against doing so during the current crisis.

Echoing this message, the PLSA stated that in the majority of cases, the best action was to "stay course with your workplace pension", emphasising that, historically, share and other asset prices will recover with time.

The guide has also warned savers of the heightened risk of pension scams amid the current crisis, urging savers to be wary of criminals that may try to scam them out of their pension.

This follows a series of warnings around the increased risk of pension scams, with Pensions Minister Guy Opperman recently also cautioning against the “callous crooks” waiting to take advantage of anxious savers.

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